Textile and clothing exporters have started feeling the impact of Covid-19 because of supply chain disruptions, fall in exports and cancellation of international events.
According to the Cotton Textiles Export Promotion Council (Texprocil), 11 countries buy 41 percent of India’s cotton yarn exports and these countries have reported Covid-19 cases. Yarn exports are down 30 percent in value terms in January-February compared with a year earlier. There is a sharp fall in cotton yarn exports to China, Iran, Korea and Vietnam.
Exporters are unable to get appointments from buyers for Market Week 2020 to be held in New York later this month, pointed out Siddhartha Rajagopal, Executive Director of the council. In the case of home textiles, the biggest markets include France, Germany and the U.S. “We need to wait and watch (the market situation in) these countries. China is the largest supplier and India can tap opportunities for specific products,” he said. Texprocil has also called off Ind-Texpo 2020, its flagship event which is a reverse buyer-seller meet, to have been held in Coimbatore between March 17 and 19.
The Apparel Export Promotion Council had asked garment exporters who depend on China largely for their import requirements to explore other sources. In a communique to members, the council listed suppliers from Japan for woven fabric made out of artificial filament yarn, slide fasteners and parts, sewing machines, furniture, bases and covers, and sewing machine needles.
“AEPC has made a preliminary study on the possible impact of disruptions of supply of raw materials from China,” said A. Sakthivel, Chairman, AEPC.
U.S., Israel opportunities: Similarly, the council has identified products that buyers in the U.S. and Israel are interested in sourcing from India. They had been buying these products from China so far. Sakthivel said Indian exporters should tap such opportunities.